Does the 2020 Enterprise Law broaden the rights of common shareholders to convene a General Meeting of Shareholders?

According to Clause 3, Article 116 of the Law on Enterprises 2020 (effective from January 1, 2021):

Shareholders or groups of shareholders as stipulated in Clause 2 of this Article have the right to request the convening of a General Meeting of Shareholders in the following cases:

- The Board of Directors seriously violates the rights of shareholders, the obligations of managers, or makes decisions that exceed the authority granted;

- Other cases as stipulated in the company’s Charter.

Thus, the new regulation abolishes the case where shareholders or groups of shareholders have the right to convene a General Meeting of Shareholders when the term of the Board of Directors has exceeded 06 months without a new Board of Directors being elected for replacement.

This shows that the Law on Enterprises 2020 has narrowed the scope for ordinary shareholders to convene a General Meeting of Shareholders.

Sincerely!